Reg CC - 11 Day Holds

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Question:

On Reg CC holds, when is it necessary to use an 11 day hold since there are no longer local/non local checks?

Answer:

Your bank could impose a hold of that duration on non-next-day items deposited in a new account, if disclosed in account disclosures.

Otherwise, a hold until the 7th business day is the normal maximum for even exception holds.

If the bank can demonstrate the added risk, it could place a longer than 7th business day exception hold (under the last sentence in Section 229.13).

First published on BankersOnline.com 2/21/11